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Agenda - Council Work Session - 07/23/2024
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Agenda - Council Work Session - 07/23/2024
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Meetings
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Agenda
Meeting Type
Council Work Session
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07/23/2024
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The deadline to submit a ballot question to be included on the General Election Ballot in November is August 13, <br /> 2024. If desired, staff can prepare informational materials to share with the public on what a bond issuance would <br /> have on the property tax levy. Staff has not begun preparing these materials due to the uncertainty of the ballot <br /> question following the schematic design proposal denial. If we use the above $25 million estimate to then <br /> establish bonding needs minus existing cash funds available in the amount of$3 million, that would equate to a <br /> $22 million bond. At the April 9th Work Session discussion, staff provided an annual debt service estimate of <br /> $1.325 million on a 20-year$17 million dollar bond. Based on this estimate, a$22 million bond would equate to <br /> an approximate $1.714 million annual debt service requirement. <br /> Other factors to consider for this project time frame is the 2024 approvals for three residential projects within the <br /> COR. These projects will generate an additional $2,531,684 in Park and Trail Dedication Fees once final platted. <br /> One of the projects is a multi-phase detached townhome project with the full payment coming over about four <br /> phases. By the end of 2025, it is expected that$2.2 million of this total will be collected equating to a cash <br /> balance available for the project of$5.2 million. <br /> Alternatives: <br /> 1) Proceed forward with a November 2024 Ballot Question. Cost estimates utilized would be high level based on <br /> conceptual drawings totaling $25 million. Staff would prepare new bonding estimates on a$22 million dollar <br /> bond, and then prepare informational materials to distribute ahead of the November Election. This would begin <br /> as soon as possible to educate voters prior to the start of the absentee balloting period, and to answer questions the <br /> public may have. <br /> 2) Delay the project and Ballot Question. This would allow for the cash balance to increase as private <br /> development continues to be strong within the COR. Furthermore,we could utilize the existing cash balance to <br /> prepare more detailed plans to generate a more accurate bonding need. We could further explore the operational <br /> style of the facility to best fit our needs and refine future anticipated revenue. <br /> Timeframe: <br /> 30 minutes <br /> Funding Source: <br /> Responsible Party(ies): <br /> Brian Hagen <br /> Mark Riverblood <br /> Outcome: <br /> Provide consensus direction on a 2024 Ballot Question. If proceeding with a ballot question, staff would bring <br /> back language to review at the next Work Session for approval. The question would then be submitted to the <br /> County for inclusion on the November Ballot. If the direction is to delay the project, staff would likely wait for <br /> the new year following the budget season and the onboarding of the new City Council to continue discussion. <br /> Attachments <br /> No files) attached. <br /> Form Review <br /> Inbox Reviewed By Date <br /> Mark Riverblood Mark Riverblood 07/18/2024 12:33 PM <br /> Brian Hagen Brian Hagen 07/18/2024 03:27 PM <br /> Form Started By:Brian Hagen Started On:07/18/2024 10:58 AM <br /> Final Approval Date:07/18/2024 <br />
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